Honoraria/Compensation for Services: F-1/J-1 Students
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F-1 and J-1 Students - Indiana University Sponsored
Tax law makes a distinction between dependent personal services (employment) and independent personal services
(honoraria, for example). Thus, it is possible, in tax law, to pay someone an honorarium for a lecture, but not to consider
that individual an employee. Immigration law occasionally recognizes this difference. For example, B-1 and B-2 visitors may
not be employees, but they may receive an honorarium.
However, in most other cases, immigration law does not distinguish between employment and honoraria. Any compensation for
services is considered "work". And many visa types enforce strict rules about permissible work. If a visitor violates these
rules, the visitor can fall out of status and face deportation.
Students (J-1 and F-1) have limited rights to work in the United States. When students receive an honorarium for performing
a service immigration law considers this a kind of "work". If the service is performed during fall or spring semester and the
student is already working twenty hours a week, then the student violates status by accepting payment. If the service is
performed during break periods or the summer and payment will be through the IU system, then the student can usually accept
the payment without jeopardizing status.
Before you agree to pay an honorarium to an Indiana University student, the student should check with a foreign student
advisor in the international office and should be assured by that office that receiving the honorarium will not violate the
student's status.
F-1 and J-1 Students - Non-IU Sponsored
F-1 and J-1 students who are short-term visitors at Indiana University are likely to be sponsored by some other educational
institution. When J-1 or F-1 students receive an honorarium for performing a service, they have "worked" under immigration
law. If you wish to pay a student whose I-20 or DS-2019 was issued by another university, then that student would be considered
to be doing off-campus work.
Off-campus work for F-1 and J-1 students is tightly regulated and always requires permission of the foreign student
advisor (designated school official) of the sponsoring institution. Before you offer an honorarium to a non-IU student,
you should advise the student to speak with an advisor at the student's home institution. The student should not agree to
receive an honorarium until he or she has secured permission from the advisor at the home institution. Under very limited
circumstances, students may be able to receive the payment without jeopardizing status. They are best protected if they put
their particular case before an advisor for review first.
Payment Procedures
In order to pay an F-1 or J-1 student an honorarium, the department must collect copies of the following documents:
- Tax Cover Sheet-International Short-Term Visitor
- Copy of I-94 Departure Card
- Form W-8BEN, Part I, questions
1-6 and Part IV.
If the visitor is a tax resident of country that has a
tax treaty with the U.S., the
visitor may be eligible to receive an exemption from the required income tax withholding. In order to apply for a
treaty based exemption, the visitor must submit the following documentation:
- International Tax Questionnaire (ITQ).
- Copy of current DS-2019 (J-1)
- Copy of current I-20 (F-1)
The tax department will process the tax questionnaire and determine if the individual is eligible to receive tax treaty
benefits. If eligible, an IRS Form 8233 and a
supplemental certification statement will be generated for the visitor to review and sign. A U.S. tax ID number, or proof of
application for a U.S. tax ID number, is required before Indiana University can generate the Form 8233. If the visitor does
not have a U.S. tax ID number but wishes to apply for one during their visit to IU, see
Applying for an ITIN to determine the appropriate process for your visitor.
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